BAT's Attempted Acquisition of ELFBAR and Vaping Concerns

Mar.21.2023
BAT's Attempted Acquisition of ELFBAR and Vaping Concerns
BAT tested leading e-cigarette brands and found many to be over the nicotine limit in the UK market.

On March 17th, British media outlet betterRetailing released a testing report on BAT (British American Tobacco). The report found that almost all major disposable e-cigarette brands in the UK exceeded their allowed limits for liquid. This includes popular brands such as ELFBAR, LOSTMARY, Found Mary, IVG Bar, Klik Klak, SMOK, SKE Crystal, and Solo. On the same day, the parent company of ELFBAR and LostMary, Shenzhen iQiyi Technology Co., Ltd. (referred to as "iQiyi"), gave an interview to 2FIRSTS.


IQIYI has disclosed for the first time that BAT had contacted them starting from August 2022 and expressed interest in acquiring details of ELFBAR.


VUSE and ELFBAR products on the shelves of a British grocery store | Source: 2FIRSTS London News Center


BAT is the second largest tobacco company in the world with a sales revenue of 27.7 billion pounds (approximately 231.5 billion yuan) in 2022. Their portfolio includes the electronic cigarette brand VUSE and the heat-not-burn product brand Glo.


ELFBAR is a leading brand in the electronic cigarette market in the United Kingdom, holding a significant share of the market for disposable electronic cigarettes.


According to the information provided by iQiyi, the process of the two parties' contact has been summarized as follows:


In August 12, 2022, a representative (unnamed) from BAT had multiple meetings with ELFBAR's manufacturer and market researcher, Miracle. On September 28, 2022, at 4:00 pm, BAT invited Miracle for a video meeting and orally expressed their interest in acquiring ELFBAR. Both parties engaged in brief communication. After September 28, BAT executives proposed to purchase the ELFBAR brand at an undisclosed price. Rumors circulated in the UK market that ELFBAR had been acquired by BAT. From November to December 12, 2022, BAT had multiple discussions with Miracle about the acquisition details. BAT executives wanted Miracle to clarify if they were willing to sell a "partial share" of the ELFBAR brand. On December 12, 2022, Miracle responded to BAT's email, stating that they had no intention of selling the ELFBAR brand.


An incident of excessive levels of tobacco in e-liquids has occurred abruptly.


On February 6th, 2023, almost two months after rejecting BAT's acquisition offer, ELFBAR was exposed by UK media outlet DailyMail for exceeding the limit of vaping oil. The incident continued to escalate, and on March 16th, BetterRetailing published an article revealing that they had received a test report from BAT indicating that a UK disposable e-cigarette product brand did not meet the standards. The media outlet also disclosed that BAT had sent the report to distributors, retailers, and law enforcement agencies in order to highlight the importance of compliance in the market.


BAT promotional brochure | Source: 2FIRSTS London News Center - BAT cannot act as an "electronic cigarette law enforcement officer".


2FIRSTS conducted interviews with relevant lawyers and industry representatives regarding this matter.


According to Tang Shunliang, a lawyer at Zhong Lun Wende (Kunming) Law Firm in Beijing, the current competitive strategy of major tobacco companies is to quickly expand their share of the new tobacco market. When they are unable to secure market share through patents, the most effective approach is to acquire small and medium-sized enterprises through distribution channels in order to gain access to end users. This impatient and results-driven behavior often leads to unsuccessful acquisition attempts, which in turn may result in unfriendly actions aimed at weakening the target company in order to gain market share.


BAT and PMI Patent Comparison | Source: 2FIRSTS


Meanwhile, BAT has a history of using "moral weaponry." For instance, in the process of suing PMI to invalidate its heated tobacco patent (CA-2021-000302) in the UK, BAT attacked PMI's patent application on the basis that it was intended to accuse more competitors of infringement. In the end, BAT emerged victorious in this case.


According to lawyer Tang Shunliang, the main reason for BAT's acquisition of ELFBAR is due to the market competition between BAT and PMI in the field of new tobacco.


BAT is looking to expand its market share in the emerging tobacco field, and acquiring ELFBAR, a leading competitor in the disposable e-cigarette sector, seems like a reasonable idea. However, the concern remains that BAT shouldn't act as the "e-cigarette enforcement police." As a competitor, purchasing the products of a rival for testing and publicizing the results could raise suspicions about their motivation and testing impartiality.


This statement is corroborated by the response of John, the chairman of the UK Vaping Industry Association (UKVIA), to 2FIRSTS. John told 2FIRSTS:


British American Tobacco (BAT) has conducted numerous tests on some of the leading disposable e-cigarette brands in the UK, and shared its findings with various institutions. Other companies have conducted similar tests, but their results differ from those of BAT's testing.


On March 17, 2FIRSTS reached out via email to relevant personnel at BAT. On March 19, 2FIRSTS received an email response from Sam Millicheap, the Director of External Affairs for BAT in the UK and Ireland. In his response, Millicheap acknowledged that they "regularly test all publicly available products in the e-cigarette category through an independent verification laboratory." 2FIRSTS noted that his response was consistent with the response given to the media outlet betterretailing.


Warning:


This article is solely intended for industrial research and does not represent recommendations for any brands or products. The brands mentioned in this article are solely used for the purpose of describing the events. Smoking is harmful to one's health. For more information, please refer to related reading materials.


Overview of the ELFBAR UK E-liquid Exceeding Safety Standards Incident


Lawyer's Op-ed: BAT Cannot Serve as Electronic Cigarette Law Enforcement Police


The British Vaping Association has stated that the test results conducted by BAT are not consistent with those carried out by other organizations.


For more related news on "Miracle", please click on the image.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

EU Tobacco Tax Reform Targets November Push as Sweden Holds Nicotine-Pouch Minimum at €20 per Kilogram
EU Tobacco Tax Reform Targets November Push as Sweden Holds Nicotine-Pouch Minimum at €20 per Kilogram
The Irish presidency of the Council of the European Union is using bilateral talks to push the bloc’s Tobacco Taxation Directive toward a political agreement in November. According to Law360, citing an EU official, Sweden is unwilling to accept a minimum excise threshold above €20 per kilogram for nicotine pouches. Council negotiations have already lowered the European Commission’s original proposal, but a May 2026 presidency compromise still set the minimum at 10% of the tax-inclusive retail price or €30 per kilogram in 2028-29, with higher levels later.
Market
Sep.17 by 2Firsts Perspectives
China Tobacco Plans CNY 60 Billion Investment in ICBC, Agricultural Bank as Strategic Ties Extend Beyond Equity
China Tobacco Plans CNY 60 Billion Investment in ICBC, Agricultural Bank as Strategic Ties Extend Beyond Equity
China National Tobacco Corporation and several subsidiaries plan to invest a combined CNY 60 billion ($8.7 billion) in share placements by Industrial and Commercial Bank of China and Agricultural Bank of China as strategic investors. The agreements extend beyond equity investment to corporate governance, banking services and supply-chain finance. The filings also disclose 2025 data on China Tobacco’s tax and profit contributions and industry scale.
Sep.07
From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
China-based China Tobacco Hubei Industrial Co., Ltd. has filed a patent application covering an oral nicotine product and its preparation method. The patent proposes a soft candy-shaped oral nicotine product containing nicotine ingredients, gelling agents, sweeteners and alkaline pH regulators. Through formulation adjustments and homogeneous or dual-layer structures, the technology aims to achieve different nicotine release profiles. The filing reflects exploration of new oral nicotine product formats and controlled nicotine delivery approaches.
Aug.06
UK Sets Oct. 29 Start for New Vape Retail Rules Covering Age Checks, Giveaways and Discounts
UK Sets Oct. 29 Start for New Vape Retail Rules Covering Age Checks, Giveaways and Discounts
The UK Department of Health and Social Care published new guidance on Aug. 11 outlining the next phase of retail rules under the Tobacco and Vapes Act 2026, which will take effect on Oct. 29, 2026. The measures extend the minimum age of sale of 18 to all vaping and consumer nicotine products and restrict proxy purchasing, promotional giveaways and substantial discounts. Relevant offences in England, Wales and Scotland may carry a £200 fixed penalty notice, while persistent offenders can face temporary sales bans.
Aug.12
Product | PMI Japan Expands ZYN by IQOS Strength Portfolio With Strong Series, Increasing Lineup to 12 Products
Product | PMI Japan Expands ZYN by IQOS Strength Portfolio With Strong Series, Increasing Lineup to 12 Products
Philip Morris Japan (PMJ) has expanded the ZYN by IQOS oral tobacco pouch portfolio in Japan with four new ZYN Strong products, adding a third intensity level alongside the existing Low and Medium ranges. The Strong series first entered selected duty-free channels in Japan on July 1, 2026, before expanding to IQOS stores, the ZYN Online Store and selected tobacco retailers from August 18. The expansion increases the Japanese ZYN by IQOS lineup from eight to 12 products.
Aug.20
BAT UK Director Tolga Kilic Says Illicit Nicotine Market Squeezes Legal Retailers Amid Rising Compliance Costs
BAT UK Director Tolga Kilic Says Illicit Nicotine Market Squeezes Legal Retailers Amid Rising Compliance Costs
UK retail publication Grocery Trader has published a viewpoint article from Tolga Kilic, Commercial Director for BAT UK & Ireland, discussing the impact of illicit nicotine products on legitimate retail channels. Kilic said illegal vapes and other illicit nicotine products create competitive pressure for compliant retailers and called for stronger market controls and supply-chain oversight. The comments come as the UK advances policies including the disposable vape ban and Vaping Products Duty, creating a more complex operating environment for legal vape retailers.
Jul.28